TL;DR
- Bitcoin consolidated to $37,000 as altcoins, excluding LUNA-related tokens, fell. Crypto analyst MustacheTA has spotted a Golden Cross on the monthly Altcoin market chart, indicating a potential upward trend.
- Golden Crosses, a bullish pattern where a short-term moving average surpasses a long-term average, historically coincide with altcoin rallies, as seen in 2016 and 2020.
- When altcoin season begins, Bitcoin dominance often decreases. Since most altcoins are linked to Ethereum, we are closely monitoring the impact of Ethereum’s growing interest and price fluctuations on altcoin prices.
Golden cross appears on altcoin market charts
Bitcoin’s fate is uncertain as the cryptocurrency asset struggles at $37,000. As CryptoPotato reported, Bitcoin has entered a consolidation phase characterized by a slight upward trend and significantly lower volatility.
The altcoin market is also mostly in deficit, except for LUNA-related tokens. However, the start of altcoin season could be getting closer, as a prominent cryptocurrency analyst has identified a rare trend in the altcoin market: a golden cross forming on the monthly altcoin market charts.
An analyst using the username MustacheTA shared screenshots showing the pattern, predicting that a golden cross could appear just before the end of the month.
Please note that the Golden Cross on the SMA20 monthly chart is imminent (the month closes in a few days).
This has only happened twice in altcoin history.
In 2016 and 2020, this marked the beginning of an altcoin bull market. pic.twitter.com/DESXV2zWtV
– Make 𝕄א𝕦 𝕔ⓗ 🧲 (@el_crypto_prof) November 26, 2023
A golden cross is a bullish technical chart pattern that indicates a significant upward trend. This happens when a stock’s short-term moving average crosses its long-term moving average. This pattern is the exact opposite of a bearish signal called a dead cross. Moreover, the analyst highlighted the reliability of this indicator when it is formed on higher time frames, such as on monthly charts.
According to the analyst, previous instances of golden crosses on altcoin market charts were spotted in 2016 and 2020, both of which coincided with significant rises in several altcoins. Although historical data is not indicative of future price movements, analysts have suggested the possibility of a similar scenario in the current market.
This pattern has occurred only twice in cryptocurrency history and is a harbinger of a bullish trend.
Is altcoin season coming?
One of the key factors ahead of altcoin season is the weakening dominance of Bitcoin. Of course, there are exceptions, but this is generally how altcoin season begins, as traders look for alternative assets to maximize their returns.
Most altcoin projects are built on Ethereum. This means that as the price of ETH rises, the price of the corresponding altcoin will also rise. This is why market participants are closely watching the price movements of ETH, especially as institutional holdings of Ethereum increase.
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